a) Where required by law, all individuals and entities must file their tax returns on due dates, signed by the individual or authorised manager of an entity, and shall have a declaration to the effect that the return is complete and accurate.
Required:
i) Under what circumstances would the Commissioner-General of Ghana Revenue Authority may, by notice, require a person to file a tax return before the due date for filing of tax returns? (4 marks)
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The Commissioner-General may, by notice, require a person to file a tax return if before the date for filing of tax returns
- the person becomes bankrupt, is wound-up or goes into liquidation; or
- the Commissioner-General believes on reasonable grounds that the person is about to leave the country indefinitely;
- is otherwise about to cease activity or business in the country; or
- has committed an offence under a tax law; or
- the Commissioner-General considers it appropriate, including where the person fails to maintain adequate documentation
(Any 4 points)
ii) What are the powers of the Commissioner-General, if a taxpayer fails to file tax return on time? (3 marks)
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- The Commissioner-General may, appoint another person to prepare and file any information that the Commissioner-General may require, including information required by the return.
- The Commissioner-General shall make an assessment of the tax liability of the person as required by the tax law, including by way of adjusted assessment, and for this purpose may use any information in the possession of the Commissioner-General including information obtained above.
b) The Commissioner-General may, in the exercise of his powers, audit the tax affairs of a person.
Required:
Identify THREE (3) factors considered for selecting a person for audit. (3 marks)
View Solution
- The history of the person with respect to compliance or noncompliance with tax laws;
- The amount of tax payable by the person;
- The class of business or other activity conducted by the person;
- Criteria developed under a compliance management plan, which may include random selection of returns for audit; or
- Other matters that the Commissioner-General considers relevant for ensuring the collection of tax due.